Colorado estimated taxes penalty in form DR 0204

[MountainGuy16]

In both 2024 & 2025, TurboTax calculates I owe a small penalty involving paying estimated taxes using form DR 0204.  I shouldn't have paid any penalty in 2024 but the amount was so small that it wasn't worth my time to figure out how to correct.   I still can't figure it out in 2025 and can't find anywhere to enter information pertaining to my payments of estimated taxes to Colorado.  What am I not seeing in TurboTax for Colorado state tax?  How to fix?

[LaShaunA3]

To enter your Colorado estimated tax payments, 

• Go to Deductions & Credits 
• Select Add more deductions. 
• Navigate to Estimates and Other Taxes Paid
• Estimated Tax Payments
•  State estimated taxes for 2025. 

Here you can enter your Colorado estimated payments.

[MountainGuy16]

Nope, those steps do not exist for the Colorado tax entry.  However, I just found a solution by selecting OTHER SITUATIONS and then UNDERPAYMENT INTEREST.  After answering several questions, it still computed the same penalty.  However, one question asked if I wanted Colorado to calculate any underpayment interest.  So I redid that and answered Yes.  That zeroed the penalty in TurboTax and the screen stated that TT will not send DR 0204 to Colorado.

[MountainGuy16]

I should add there still isn't anyplace to enter my actual estimated payments and date of payment for Colorado...at least not that I can find.

[mesquitebean]

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@ MountainGuy16 wrote:

I should add there still isn't anyplace to enter my actual estimated payments and date of payment for Colorado...at least not that I can find.

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State estimated tax payments you made for 2025 are entered on the Federal side.  I know that's not intuitive.  I'll provide the steps for both desktop and online TurboTax.

For desktop TurboTax:

• Federal Taxes tab ( exception:  Personal tab if Home and Business)
• Subtab Deductions & Credits
• If asked,  "I'll choose what I work on."
• You'll arrive at Your 2025 Deductions & Credits summary page.
• Scroll way down that page to the topic Estimates and Other Taxes Paid.
• Choose subtopic Estimates and click Start or Revisit.
• On the next screen in the section Estimated Tax Payments, you should be able to find the subtopic for state estimated tax payments.

For online Turbotax:

• With the return open, go to the left menu column and click on TAX TOOLS, then the subtab TOOLS.
• In the Tools Center choose the blue button Topic Search.
• In the topic search line enter the phrase estimated tax payments without quotes.
• Make the selection in the list (it may already be highlighted), and either double-click it or click the GO button.
• Next screen is Estimates and Other Income Taxes Paid.
• Expand the section Estimated Tax Payments.
• Choose the appropriate category and tax year you are reporting (Federal, state, local) and click START or Revisit.
  
  

NOTE:  Before filing, make sure your Federal estimated tax payments correctly show on the Form 1040, Line 26, and that any state estimated tax payments (if applicable) show up on your state return.

[mesquitebean]

@MountainGuy16 

ADDENDUM

After entering the state estimated tax payments on the Federal side as mentioned above, you may need to click through the state return interview again to get the changes to flow into the state return.   This isn't always the case, but sometimes after a state return has already been completed, new changes made on the Federal side sometimes require a nudge to the state return to be sure the state return has incorporated the change.

[MountainGuy16]

So very helpful.  Thank you mesquitebean.